MIDDLE EASTERN BUSINESS CULTURES AND APPROACHES TO MANAGEMENT

Varvara, Iry, Abhisit, Rayhan, JackGroup 4

TABLE OF CONTENTS

Introduction Relevant theory Example countries Approaches Comments Conclusion

Introduction

The role of cultures in business:

Reflects of market Tool of communication Competitive advantage

Middle East

Edgar Schein's model of culture

Artifacts

Espoused Values

Assumptions

Artifacts

Visible elements in a culture. Recognized by people. Might not be able to fully understand.

Middle Eastern Business Culture

Understanding the Middle East’s Reality verses its Perception Business Referrals / Introduction Business is Personnel Time is NOT of the Essence Selecting a Local Partner

Espoused values

Leading figures of a culture. General and shared assumptions. If espoused values are not in line might

cause trouble. Do not separate professional and

personal life. Small talk is more than just a courtesy Face to face Decisions can take a long time.

Understanding the Middle East’s Reality verses its Perception

Business culture and Business etiquette. meeting protocol and Negotiation

techniques The Middle East is often perceived as

corrupt Risk of corruption.

It is NOT What you Know, It is Whom you Know

The traditional Islamic greeting 'Asalamu alaykum' (peace be with you). 'wa alaykum salam' (and peace be with

you). Handshakes can last a long time. About Middle East: chaotic, disorganized

and frustrating.

Turn-offs and/or Rude Moves

Do not eat or drink during Ramadan Do not use your left hand. Never cross your legs and display the

sole of your foot. Do not eat pork, drink alcohol. Workweeks may vary Never interrupt Muslims at prayer. Exceedingly generous, hospitality is

legendary.

Assumptions

Shared values. Not be especially visible to everyone. Assumptions and espoused values are

possibly not correlated, Differences between espoused and

actual values may create frustrations.

Respecting the Local Language:

A few Arabic Greetings Will Do: Arab Gulf Markets can be Difficult to

Penetrate Exceptionally proud of their language. The roles of men and women Do not try to shake hands. Avoid

touching and prolonged eye contact with women.

Arabic is written right-to-left.

Prayer time Observations, Fasting, etc…

One cannot talk about the Middle East in a cultural sense without mentioning Islam.

It is best to avoid doing business on or near the two Eids.

Green is associated with Islam. Treat the flag of Saudi Arabia extremely

carefully.

Middle East - National Culture

The set of norms, behaviors, beliefs and customs that exist within the population in the

country

Collectivist - "we" takes precedence over the "I“

The Family - the family or tribe takes central focus in daily life

Hierarchy - a hierarchical society it used to levels of authority

Middle East – National Culture

Honors/Shame/Face - relationship driven cultures

Networks - due to such cultures relying on bonds and relationships

Consensus - in hierarchical societies decisions are usually made on a group basis

Hofstede’s cultural dimensions

Power Distance Individualism versus Collectivism Uncertainty Avoidance Masculinity versus Femininity (Male vs.

female) Short-Term Orientation

Trompenaars’ Seven Dimensions of Culture

Universalism versus Particularism Individualism versus

Communitarianism Specific Versus Diffuse Neutral Versus Emotional Achievement versus Ascription Sequential Time versus Synchronous

Time Internal Direction Versus Outer

Direction

Saudi Arabia – Jordan - Lebanon

National Culture

Power

Dista

nce

Indi

vidu

alism

Mas

culin

ity

Unc

erta

inty

Avo

idan

ce

Long

Ter

m O

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tation

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Saudi ArabiaJordanLebanon

Saudi Arabia’s Culture

National Culture : people accept a

hierarchical order  collectivistic society masculine society preference for

avoiding uncertainty

normative in their thinking

Core Culture Values : Islam Relationships, Trust,

Wasta Hospitality and

Generosity

Jordan’s Culture

National Culture : hierarchical society collectivistic society feminine society high preference for

avoiding uncertainty strongly normative

culture

Core Values: Islam Family Hospitality

Lebanon’s Culture

National Culture : accepts a

hierarchical order  collectivistic

society masculine society Normative culture

Core Values: Family Personal

Relationships Islam Power/Education/

Prestige

Saudi Arabia - Business Culture

Face-to-face meetings Mutual benefit Reciprocity of favors Hierarchical Modesty is highly

valued Meetings are often

lengthy Negotiations may be

tough

Jordan-Business Culture

Open, progressive and well educated

Relationships are important

Invitation of friendship

Know simple Arabic words and phrases

Lebanon - Business Culture

Employ an interpreter local agent - agent

commissions : 5 to 8% Build a Solid Relationship Developing a strong personal

relationship Exchange of mutual favors Build some flexibility into your

schedule Lebanese are not used to

seeing women in business

Conclusion

Cultural Characteristics of Middle Eastern business : Strong affected by traditional religion Emphasizing relationship between people Hierarchical

Advices for operation in Middle Eastern: Learning and understanding local religion and

habit Strengthen communication in various aspects Clarify the hierarchy in business Combination local culture and own product and

service

References

http://www.maronite-heritage.com/Lebanese%20Culture.php http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-

country-profile.html http://www.everyculture.com/Sa-Th/Saudi-Arabia.html http://geert-hofstede.com/index.php http://www.kwintessential.co.uk/resources/global-etiquette/lebanon.html http://www.everyculture.com/Ja-Ma/Lebanon.html http://www.ghazi.de/society.html http://www.roughguides.com/destinations/middle-east/jordan/culture-eti

quette/ http://www.everyculture.com/Ja-Ma/Jordan.html http://www.roughguides.com/destinations/middle-east/jordan/culture-eti

quette/ http://www.jordanembassyus.org/page/culture-and-religion